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PRINTER'S NO. 2168
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1760
Session of
2025
INTRODUCED BY SCOTT, GUENST, GIRAL, HILL-EVANS, SANCHEZ, CEPEDA-
FREYTIZ, MAYES, HOHENSTEIN, D. WILLIAMS AND HADDOCK,
JULY 23, 2025
REFERRED TO COMMITTEE ON COMMERCE, JULY 23, 2025
AN ACT
Amending Titles 51 (Military Affairs), 62 (Procurement) and 74
(Transportation) of the Pennsylvania Consolidated Statutes,
in veteran-owned small businesses, further providing for
definitions, for regulations, for participation goal, for
duties of Department of General Services and for bonding and
progress payments, providing for request for full or partial
waiver of contract-specific goal, further providing for
reports and providing for disparity study; in small and
disadvantaged businesses, further providing for policy and
for definitions, providing for Small Diverse Business Program
and for nonapplicability, further providing for regulations
and for duties of department, providing for request for full
or partial waiver of contract-specific goal, further
providing for bonding and progress payments and for report to
General Assembly and providing for aspirational target, for
disparity study and for program expiration; providing for
Participation Program for Construction and Design
Professional Services; and making editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 9601, 9602 heading, (a) and (c), 9603,
9604, 9605, 9606 and 9607 of Title 51 of the Pennsylvania
Consolidated Statutes are amended to read:
§ 9601. Definitions.
Subject to section 9602 (relating to policy and regulations),
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the following words and phrases when used in this chapter shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Aspirational target." A target established by the Secretary
of General Services under section 9603 (relating to Statewide
participation goal and aspirational target).
"Commonwealth agency." As defined in 62 Pa.C.S. § 103
(relating to definitions).
"Contract-specific goal." A goal established by the
Department of General Services in collaboration with the
purchasing agency for utilization of veteran business
enterprises on a specific procurement.
"Disparity study." A study conducted to determine whether a
disparity exists between the availability of veteran business
enterprises and the Commonwealth's utilization of veteran
business enterprises.
"Executive agency." As defined in 62 Pa.C.S. § 103
[(relating to definitions)].
"Purchasing agency." As defined in 62 Pa.C.S. § 103
[(relating to definitions)].
"Service-disabled." Being in possession of:
(1) a disability rating letter issued by the United
States Department of Veterans Affairs; or
(2) a disability determination from the United States
Department of Defense.
"Service-disabled veteran-owned small business." A small
business owned and controlled by:
(1) a service-disabled veteran or veterans; [or
(2) if approved by the Department of General Services, a
surviving spouse or permanent caregiver of a service-disabled
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veteran.]
(2) if approved by the Department of General Services, a
spouse of a disabled veteran who has been classified by the
United States Department of Veterans Affairs' Veterans
Benefits Administration as having a permanent total
disability;
( 3) if approved by the Department of General Services, a
surviving spouse who is an unmarried spouse of a deceased or
service-disabled veteran or of a service member who died on
active duty in the United States Armed Forces, including a
reserve component or National Guard; or
(4) if approved by the Department of General Services, a
permanent caregiver of a service-disabled veteran.
"Small business." As defined in 62 Pa.C.S. § 2102 (relating
to definitions).
"State-affiliated entity." As defined in 62 Pa.C.S. § 103
[(relating to definitions)].
"Utilization schedule." A document, submitted by a bidder or
offeror as part of a bid or proposal, in which a bidder or
offeror commits to a level of veteran business enterprise
participation for a contract, identifies the associated
responsibilities and scopes of work and identifies the dollar
value or percentages of the work to be performed.
"Veteran." An individual who served in the United States
Armed Forces, including a reserve component or the National
Guard, and who was discharged or released from service under
conditions other than dishonorable.
"Veteran business enterprise." Any of the following:
(1) A veteran-owned small business.
(2) A service-disabled veteran-owned small business.
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"Veteran-owned small business." A small business owned and
controlled by a veteran or veterans.
§ 9602. [Regulations] Policy and regulations.
(a) Promulgation.--The Department of General Services shall
establish policy [in accordance with this subchapter] for
executive agencies and those independent agencies [and may, in
consultation with the department, promulgate regulations
establishing detailed definitions of the words and phrases
defined in section 9601 (relating to definitions) using, in
addition to the criteria set forth in section 9601, other
criteria as it deems appropriate, including the number of
employees and the dollar volume of business.] for which the
Department of General Services acts as a purchasing agency. The
Department of General Services in its discretion may promulgate
regulations. The policy or regulations may establish detailed
definitions of the words and phrases defined under section 9601
(relating to definitions) using, in addition to the criteria
specified under section 9601, other criteria as the Department
of General Services deems appropriate, including the number of
employees and the dollar volume of business.
* * *
(c) Antifraud provisions.--The Department of General
Services shall establish policy and promulgate regulations
establishing antifraud provisions to deter and penalize
businesses that [are not owned by those who are service-disabled
or by veterans but who falsely claim that they are] falsely
claim the businesses are owned by service-disabled individuals
or veterans in order to receive any [action] status authorized
by this subchapter.
* * *
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§ 9603. [Participation goal.] Statewide participation goal and
aspirational target.
A Statewide annual goal of not less than [3%] 5%
participation by [veteran-owned small businesses, including
service-disabled veteran-owned small businesses,] veteran
business enterprises is established. [ The participation goal
shall apply to the total value of all contracts available to
small businesses in each fiscal year.] The Secretary of General
Services may set a Statewide aspirational target for veteran
business enterprise participation which may be reviewed and
adjusted every five years upon completion of a disparity study
and which shall not be less than the Statewide annual goal.
§ 9604. Duties of Department of General Services.
The Department of General Services[, with the assistance of
the department,] shall have the following duties:
(1) [If feasible, provide] Provide, at the discretion of
the Secretary of General Services, appropriate staff, who
shall be responsible to the Department of General Services
and who shall [serve within designated Commonwealth agencies
to assist veteran-owned small businesses and service-disabled
veteran-owned small businesses] assist veteran business
enterprises in this Commonwealth in learning how to do
business with Commonwealth agencies.
(2) Give special publicity to procurement procedures and
issue special publications designed to assist [veteran-owned
small businesses and service-disabled veteran-owned small
businesses] veteran business enterprises in learning how to
do business with Commonwealth agencies.
(2.1) Verify the current certification of businesses
claiming to be certified as veteran business enterprises.
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(3) [Compile, maintain and make available source lists
of veteran-owned small businesses and service-disabled
veteran-owned small businesses] Develop and maintain a
directory of veteran business enterprises for the purpose of
encouraging procurement from [veteran-owned small businesses]
veteran business enterprises.
(4) Include [veteran-owned small businesses and service-
disabled veteran-owned small businesses] veteran business
enterprises on solicitation mailing lists.
(5) Assure that [veteran-owned small businesses and
service-disabled veteran-owned small businesses are
solicited] purchasing agencies solicit veteran business
enterprises on procurements for which the businesses may be
suited.
(6) Develop [special] training programs to assist
[veteran-owned small businesses and service-disabled veteran-
owned small businesses] veteran business enterprises in
learning how to do business with Commonwealth agencies.
[(7) Assure that participation by veteran-owned small
businesses and service-disabled veteran-owned small
businesses is, if appropriate, factored into the evaluation
of proposals for supplies, services or construction when a
purchasing agency uses the competitive sealed proposals
method under 62 Pa.C.S. § 513 (relating to competitive sealed
proposals).
(8) Verify the current certification of businesses
claiming to be certified as veteran-owned small businesses
and service-disabled veteran-owned small businesses.]
(9) Establish contract-specific goals for utilization of
veteran business enterprises, in collaboration with the
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purchasing agency, based upon relevant factors, including the
availability of veteran business enterprises to provide the
supplies, materials and equipment or services required by the
scope of work of the procurement.
(10) In collaboration with the purchasing agency, review
utilization schedules, consider requests for waivers of
contract-specific goals based upon a showing of all efforts
and evaluate the extent to which contract-specific goals were
achieved.
(11) Monitor contracts to evaluate compliance with
contract-specific goals and commitments.
(12) Cooperate with and provide assistance to
Commonwealth agencies to facilitate participation by veteran
business enterprises in procurements.
(13) Receive, review and act upon complaints and
suggestions concerning the utilization of veteran business
enterprises, with the assistance of the purchasing agency, as
appropriate.
(14) Monitor and evaluate the Commonwealth's utilization
of veteran business enterprises and the Commonwealth's
progress toward the aspirational target.
§ 9605. Bonding and progress payments.
(a) Bonding.--Notwithstanding 62 Pa.C.S. Pt. I (relating to
Commonwealth Procurement Code) or any other law or regulation:
(1) Except as provided in paragraph (2), a purchasing
agency may reduce the [level] amount or change the types of
bonding normally required or accept alternative forms of
security to the extent reasonably necessary to encourage
procurement from [veteran-owned small businesses and service-
disabled veteran-owned small businesses] veteran business
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enterprises.
(2) For contracts under $25,000, [veteran-owned small
businesses and service-disabled veteran-owned small
businesses] veteran business enterprises shall be exempt from
any bonding requirements.
(b) Progress payments.--A purchasing agency may make special
provisions for progress payments as it deems reasonably
necessary to encourage procurement from [veteran-owned small
businesses and service-disabled veteran-owned small businesses]
veteran business enterprises.
§ 9606. [(Reserved).] Request for full or partial waiver of
contract-specific goal.
Notwithstanding any provision of this subchapter, bidders or
offerors may request a partial or full waiver of a contract-
specific goal for veteran business enterprise participation for
any unmet portion of a contract-specific goal. The following
apply:
(1) A bidder or offeror requesting a partial or full
waiver shall submit, in writing, a report detailing all
efforts to meet the contract-specific goal as required by the
solicitation.
(2) In reviewing a bidder's or offeror's written request
for a partial or full waiver of a contract-specific goal, the
purchasing agency, based on the recommendation of the
Department of General Services, shall determine if a bidder
or offeror has made all efforts to meet the contract-specific
goal and whether the waiver request should be granted.
(3) In determining if a bidder or offeror has made all
efforts, the purchasing agency and the Department of General
Services may consider levels of participation by veteran
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business enterprises by other bidders or offerors.
§ 9607. Reports.
[(a) Report to Department of General Services.--By August
15, 2013, and each August 15 thereafter, each executive agency
and independent agency shall submit an annual report for the
period of July 1 to June 30 to the Department of General
Services on actual utilization of veteran-owned small businesses
and service-disabled veteran-owned small businesses as
contractors, subcontractors, suppliers and professional service
providers.
(b) Report to standing committees.--
(1) The Department of General Services and each State-
affiliated entity shall annually, before October 1, report in
writing to the Veterans Affairs and Emergency Preparedness
Committee of the Senate and the Veterans Affairs and
Emergency Preparedness Committee of the House of
Representatives the actual utilization, Statewide and by each
purchasing agency, of veteran-owned small businesses and
service-disabled veteran-owned small businesses during the
preceding fiscal year.
(2) The report shall include a list of all veteran-owned
small businesses and service-disabled veteran-owned small
businesses that participated as contractors, subcontractors,
suppliers and professional service providers during the
preceding fiscal year.
(3) Initial reports under this subsection shall be
submitted to the standing committees by October 1, 2013.]
(c) Annual report.--
(1) The Department of General Services shall annually
report in writing to the Veterans Affairs and Emergency
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Preparedness Committee of the Senate and the Veterans Affairs
and Emergency Preparedness Committee of the House of
Representatives concerning the utilization of veteran
business enterprises in Commonwealth contracts.
(2) Each annual report shall include statistical
information regarding veteran business enterprises, including
business classification, location and industry.
(3) In preparing an annual report, the Department of
General Services shall verify if commitments made to veteran
business enterprises in the course of awarding the contracts
have been maintained or achieved.
Section 2. Title 51 is amended by adding a section to read:
§ 9609. Disparity study.
In conjunction with the schedule for the disparity study
completed on June 30, 2024, and every five years thereafter, the
Department of General Services shall complete a Statewide
disparity study on the availability and utilization of veteran
business enterprises, the results of which may be used to set an
aspirational target under section 9603 (relating to Statewide
participation goal and aspirational target ).
Section 3. Chapter 21 heading and sections 2101 and 2102 of
Title 62 are amended to read:
CHAPTER 21
SMALL [AND DISADVANTAGED] DIVERSE BUSINESSES
§ 2101. Policy.
The policy of this Commonwealth is to assist [small and
disadvantaged businesses in learning how to do business with
Commonwealth agencies. The department shall implement this
policy in accordance with regulations promulgated by the
department.] small businesses and small diverse businesses in
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learning how to do business with Commonwealth agencies. The
department shall implement this policy in accordance with
department regulations and policy.
§ 2102. Definitions.
Subject to section 2103 (relating to policy and regulations),
the following words and phrases when used in this chapter shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency liaison." An agency employee reporting directly to a
secretary, agency head or equivalent responsible for assisting
the agency on issues related to the program.
"Aspirational target." A target established by the Secretary
of General Services under section 2109 (relating to aspirational
target).
"Contract-specific goal." A goal established by the
department in collaboration with the purchasing agency for
utilization of small diverse businesses on a specific
procurement.
["Disadvantaged business." A small business which is owned
or controlled by a majority of persons, not limited to members
of minority groups, who have been deprived of the opportunity to
develop and maintain a competitive position in the economy
because of social disadvantages.]
"Disparity study." A study conducted to determine whether
there is a disparity between the availability and utilization of
small diverse businesses in Commonwealth procurement.
"Program." The Small Diverse Business Program established
under section 2102.1 (relating to Small Diverse Business
Program).
"Race-neutral and gender-neutral measures." Methodologies
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that are or can be used to assist businesses, notwithstanding
the social, economic, racial or gender composition of the
individuals that own or control the business.
"Small business." A business in the United States which is
independently owned[,] and is not dominant in its field of
operation and employs [100] 500 or fewer employees.
"Small diverse business." A small business owned or
controlled by a majority of persons, not limited to members of
minority groups, that have been deprived of the opportunity to
develop and maintain a competitive position in the economy
because of economic and social disadvantages.
"Utilization schedule." A document, submitted by a bidder or
offeror as part of a bid or proposal, in which a bidder or
offeror commits to a level of small diverse business
participation for a contract, identifies the associated
responsibilities and scopes of work and identifies the dollar
value or percentages of the work to be performed.
Section 4. Title 62 is amended by adding sections to read:
§ 2102.1. Small Diverse Business Program.
The Small Diverse Business Program is established within the
department to assist small diverse businesses in accordance with
this chapter.
§ 2102.2. Nonapplicability.
Beginning on the effective date of this section, this chapter
shall not apply to procurements for construction and design
professional services.
Section 5. Sections 2103 and 2104 of Title 62 are amended to
read:
§ 2103. [Regulations] Policy and regulations.
[The] To implement the program, the department shall
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establish policy for executive and those independent agencies
for which the department acts as purchasing agency and may
promulgate regulations. [establishing detailed definitions of
the words and phrases defined in section 2102 (relating to
definitions) using, in addition to the criteria set forth in
section 2102, other criteria as it deems appropriate, including
the number of employees and the dollar volume of business.
State-affiliated entities shall implement the policy for their
procurement programs.] The policy may establish detailed
definitions of the words and phrases defined under section 2102
(relating to definitions) using, in addition to the criteria
specified under section 2102, other criteria as the department
deems appropriate, including the number of employees and the
dollar volume of business. State-affiliated entities shall
implement the policy for their procurement.
§ 2104. Duties of department.
[The department shall have the following duties:
(1) Where feasible, provide appropriate staff who shall
be responsible to the department and who shall serve within
designated Commonwealth agencies to assist small and
disadvantaged businesses in this Commonwealth in learning how
to do business with Commonwealth agencies.
(2) Give special publicity to procurement procedures and
issue special publications designed to assist small and
disadvantaged businesses in learning how to do business with
Commonwealth agencies.
(3) Compile, maintain and make available source lists of
small and disadvantaged businesses for the purpose of
encouraging procurement from small and disadvantaged
businesses.
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(4) Include small and disadvantaged businesses on
solicitation mailing lists.
(5) Assure that small and disadvantaged businesses are
solicited on each procurement for which the businesses may be
suited.
(6) Develop special training programs to assist small
and disadvantaged businesses in learning how to do business
with Commonwealth agencies.] The department shall administer
the program. The department's duties shall include:
(1) Formulating, proposing and implementing policy and
regulations for the development, implementation and
monitoring of the program, including the process or
procedures to govern the following:
(i) The process and criteria for certification,
verification, recertification and decertification of
small businesses and small diverse businesses.
(ii) The setting of contract-specific goals.
(iii) Changes to solicitation and contract language,
requirements and forms.
(iv) Monitoring and tracking contract commitments
and utilization of small diverse businesses.
(v) Mentor-protégé programs.
(vi) Program-related education, training, networking
and outreach.
(vii) Any other processes or procedures the
department deems necessary to implement the program.
(2) Developing, using and assisting purchasing agencies
in using race-neutral and gender-neutral measures to
facilitate the participation of all businesses in
Commonwealth procurement activities, including the
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implementation of a program to reserve procurements for award
to self-certified small businesses only.
(3) Developing and maintaining a directory of small
businesses and small diverse businesses.
(4) Providing information and assistance to small
businesses and small diverse businesses relating to the
program, including special training programs to assist small
businesses and small diverse businesses in learning how to do
business with Commonwealth agencies and serving as liaison to
community, contractors, professionals and supplier groups,
associations and organizations.
(5) Collaborating with and providing information and
assistance to Commonwealth agencies to facilitate
participation by small businesses and small diverse
businesses in procurements.
(6) Establishing thresholds for procurements which
require the setting of contract-specific goals.
(7) Ensuring that small diverse businesses are solicited
on procurements for which the businesses may be suited.
(8) Establishing contract-specific goals, in
collaboration with the purchasing agency, based upon relevant
factors, including, but not limited to, the availability of
small diverse businesses to provide the supplies, materials
and equipment or services required by the scope of work of
the procurement.
(9) In collaboration with the purchasing agency,
reviewing utilization schedules, considering requests for
waivers of contract-specific goals based upon a showing of
all efforts and evaluating the extent to which contract-
specific goals were achieved.
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(10) Monitoring contracts to evaluate compliance with
contract-specific goals and commitments.
(11) Receiving, reviewing and acting upon complaints and
suggestions concerning the program, with the assistance of
the purchasing agency, as appropriate.
(12) Coordinating with agency liaisons on agency issues
related to the program.
(13) Evaluating the effectiveness and utility of the
program.
(14) Monitoring the program and the Commonwealth's
progress toward the aspirational target.
(15) Identifying barriers to participation by small
diverse businesses in Commonwealth procurement.
(16) Providing appropriate staff, in the discretion of
the Secretary of General Services, to assist small diverse
businesses in this Commonwealth in learning how to do
business with Commonwealth agencies.
Section 6. Title 62 is amended by adding a section to read:
§ 2104.1. Request for full or partial waiver of contract-
specific goal.
Notwithstanding any provision of this chapter, bidders or
offerors may request a partial or full waiver of a contract-
specific goal for small diverse business participation. The
following apply:
(1) A bidder or offeror requesting a partial or full
waiver shall submit, in writing, a report detailing all of
the bidder's or offeror's efforts to meet the contract-
specific goal as required by the solicitation.
(2) In reviewing a bidder's or offeror's written request
for a partial or full waiver of a contract-specific goal, the
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purchasing agency, based on the recommendation of the
department, shall determine if a bidder or offeror has made
all efforts to meet the contract-specific goal and to what
extent the waiver request should be granted.
(3) In determining if a bidder or offeror has made all
efforts, the purchasing agency and the department may
consider levels of participation by small diverse businesses
by other bidders or offerors.
Section 7. Sections 2105 and 2107 of Title 62 are amended to
read:
§ 2105. Bonding and progress payments.
(a) Bonding.--[Notwithstanding other provisions of this
part, a] A purchasing agency may reduce the [level] amount or
change the types of bonding normally required or accept
alternative forms of security to the extent reasonably necessary
to encourage procurement from [small and disadvantaged
businesses] small businesses and small diverse businesses.
(b) Progress payments.--A purchasing agency may make special
provisions for progress payments as it deems reasonably
necessary to encourage procurement from [small and disadvantaged
businesses] small businesses and small diverse businesses.
§ 2107. Report to General Assembly.
The department shall annually[, before October 1,] submit a
report in writing to the General Assembly concerning the
awarding of contracts [to small and disadvantaged businesses]
and subcontracts to small businesses and small diverse
businesses during the preceding fiscal year. The report shall
include [a list of all small and disadvantaged businesses that
participated as contractors, subcontractors or suppliers during
the preceding fiscal year for contracts if the number of
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contractors under a previously existing contract for the same
supply or service is reduced to a single contractor or reduced
by more than 50% of the number existing on September 30, 2003.]
statistical information regarding the program and information
regarding small businesses and small diverse businesses,
including business classification, location and industry. In
preparing the report, the department shall verify whether
commitments made to small [and disadvantaged] diverse businesses
in the course of awarding these contracts have been maintained
or achieved.
Section 8. Title 62 is amended by adding sections to read:
§ 2109. Aspirational target.
The Secretary of General Services shall set an aspirational
target for small diverse business participation by the
Commonwealth, which shall be reviewed and adjusted every five
years upon completion of a disparity study.
§ 2110. Disparity study.
(a) Requirement.--In conjunction with the schedule for the
disparity study completed on June 30, 2024, and at least once
every five years thereafter, the department shall complete a
Statewide disparity study on the availability and utilization of
small diverse businesses, the results of which shall be used to
set an aspirational target under section 2109 (relating to
aspirational target).
(b) Notice and publication.--The Secretary of General
Services shall transmit notice to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin regarding whether or not the disparity
study shows a statistically significant disparity.
§ 2111. Program expiration.
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This chapter shall expire December 31, 2030 , unless the
disparity study shows a statistically significant disparity in
the utilization of small diverse businesses.
Section 9. Title 62 is amended by adding a chapter to read:
CHAPTER 21A
PARTICIPATION PROGRAM FOR CONSTRUCTION AND
DESIGN PROFESSIONAL SERVICES
Sec.
21A01. Definitions.
21A02. Participation Program for Construction and Design
Professional Services.
21A03. Applicability.
21A04. Policy and regulations.
21A05. Duties of department.
21A06. Request for full or partial waiver of contract-specific
goal.
21A07. Bonding and progress payments.
21A08. Report to General Assembly.
21A09. Aspirational target.
21A10. Disparity study.
21A11. Compliance with Federal requirements.
21A12. Expiration.
§ 21A01. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Aspirational target." A target established by the Secretary
of General Services under section 21A09 (relating to
aspirational target).
"Contract-specific goal." A goal established by the
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department in collaboration with the purchasing agency for
utilization of small diverse businesses on a specific
procurement.
"Disparity study." A study conducted to determine whether
there is a disparity between the availability and utilization of
small diverse businesses in Commonwealth procurement for
construction and design professional services.
"Program." The Participation Program for Construction and
Design Professional Services established under section 21A02
(relating to Participation Program for Construction and Design
Professional Services).
"Race-neutral and gender-neutral measures." Methodologies
that are or can be used to assist businesses, notwithstanding
the social, economic, racial or gender composition of
individuals that own or control the business.
"Small business." A business in the United States which is
independently owned and is not dominant in its field of
operation and employs 500 or fewer employees.
"Small diverse business." A small business owned or
controlled by a majority of persons, not limited to members of
minority groups, who have been deprived of the opportunity to
develop and maintain a competitive position in the economy
because of economic and social disadvantages.
"Utilization schedule." A document, submitted by a bidder or
offeror as part of a bid or proposal, in which a bidder or
offeror commits to a level of small diverse business
participation for a contract, identifies the associated
responsibilities and scope of work and identifies the dollar
value or percentages of the work to be performed.
§ 21A02. Participation Program for Construction and Design
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Professional Services.
The Participation Program for Construction and Design
Professional Services is established in the department.
§ 21A03. Applicability.
This chapter shall apply to procurements for construction and
design professional services.
§ 21A04. Policy and regulations.
To implement the program, the department shall establish
policy for executive and independent agencies for which the
department acts as a purchasing agency and may promulgate
regulations. The policies and regulations may establish detailed
definitions of the words and phrases defined in section 21A01
(relating to definitions) using, in addition to the criteria
specified under section 21A01, other criteria as the department
deems appropriate, including the number of employees and the
dollar volume of business. State-affiliated entities shall
implement the policy for their procurement programs.
§ 21A05. Duties of department.
The department shall administer the program. The department's
duties shall include:
(1) Formulating, proposing and implementing policy and
regulations for the development, implementation and
monitoring of the program, which shall include processes or
procedures to govern the following:
(i) The process and criteria for certification,
verification, recertification and decertification of
small businesses and small diverse businesses.
(ii) The setting of contract-specific goals.
(iii) Changes to solicitation and contract language,
requirements and forms.
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(iv) Monitoring and tracking contract commitments
and utilization of small diverse businesses.
(v) Mentor-protégé programs.
(vi) Program-related education, training, networking
and outreach.
(vii) Any other processes or procedures the
department deems necessary to implement the program for
construction and design professional services.
(2) Developing, using and assisting purchasing agencies
in using race-neutral and gender-neutral measures to
facilitate the participation of businesses in Commonwealth
procurement activities, including the implementation of a
program to reserve procurements for award to small diverse
businesses only.
(3) Providing information and assistance to small
businesses and small diverse businesses relating to the
program, including special training programs to assist small
businesses and small diverse businesses in learning how to do
business with Commonwealth agencies and serving as a liaison
to community, contractors, professionals and supplier groups,
associations and organizations.
(4) Establishing thresholds for construction and design
professional services procurements which require the setting
of contract-specific goals.
(5) Ensuring that small diverse businesses are solicited
on procurements for which the businesses may be suited.
(6) Establishing contract-specific goals, in
collaboration with the purchasing agency, based upon relevant
factors, including the availability of small diverse
businesses to provide the supplies, materials and equipment
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or services required by the scope of work of the procurement.
(7) In collaboration with the purchasing agency,
reviewing utilization schedules, considering requests for
waivers of contract-specific goals based upon a showing of
all efforts and evaluating the extent to which contract-
specific goals were achieved.
(8) Monitoring contracts to evaluate compliance with
contract-specific goals and commitments.
(9) Receiving, reviewing and acting upon complaints and
suggestions concerning the program, with the assistance of
the purchasing agency, as appropriate.
(10) Evaluating the effectiveness and utility of the
program.
(11) Monitoring the program and the Commonwealth's
progress toward the aspirational target.
(12) Identifying barriers to equitable participation by
small diverse businesses in Commonwealth procurements for
construction and design professional services.
(13) Providing appropriate staff, in the discretion of
the Secretary of General Services, to assist small diverse
businesses in this Commonwealth in learning how to do
business with Commonwealth agencies.
(14) Developing and maintaining a directory of small
businesses and small diverse businesses.
(15) Collaborating with and providing information and
assistance to Commonwealth agencies to facilitate
participation by small businesses and small diverse
businesses in construction and design professional services
procurements.
(16) Developing the conditions under which a contract-
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specific goal may be waived, either partially or fully, upon
request of a bidder or offeror in accordance with section
21A06 (relating to request for full or partial waiver of
contract-specific goal).
§ 21A06. Request for full or partial waiver of contract-
specific goal.
Bidders or offerors may request a partial or full waiver of a
contract-specific goal for small diverse business participation.
The following apply:
(1) A bidder or offeror requesting a partial or full
waiver shall submit, in writing, a report detailing all of
the bidder's or offeror's efforts to meet the contract-
specific goal as required by the solicitation.
(2) In reviewing a bidder's or offeror's written request
for a partial or full waiver of a contract-specific goal, the
purchasing agency, based on the recommendation of the
department, shall determine if a bidder or offeror has made
all efforts to meet the contract-specific goal and if the
waiver request should be granted.
(3) In determining if a bidder or offeror has made all
efforts, the purchasing agency and the department may
consider levels of participation by small diverse businesses
by other bidders or offerors.
§ 21A07. Bonding and progress payments.
(a) Bonding.--A purchasing agency may reduce the level or
change the types of bonding normally required or accept
alternative forms of security to the extent reasonably necessary
to encourage procurement from small businesses and small diverse
businesses.
(b) Progress payments.--A purchasing agency may make special
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provisions for progress payments as it deems reasonably
necessary to encourage procurement from small businesses and
small diverse businesses.
§ 21A08. Report to General Assembly.
The department shall annually submit a report in writing to
the General Assembly regarding the awarding of contracts and
subcontracts to small businesses and small diverse businesses
during the preceding fiscal year. The following apply:
(1) The report shall include statistical data from the
program, including business classification, location and
industry.
(2) In preparing the report, the department shall verify
if the commitments made in the awarding of contracts were
maintained or achieved.
§ 21A09. Aspirational target.
The Secretary of General Services shall set an aspirational
target for small diverse business participation by the
Commonwealth on procurements subject to this chapter, which
shall be reviewed and adjusted every five years upon completion
of a disparity study.
§ 21A10. Disparity study.
(a) Requirement.-- In conjunction with the schedule for the
disparity study completed on June 30, 2024 , and at least once
every five years thereafter, the department shall complete a
Statewide disparity study on the availability and utilization of
small diverse businesses in Commonwealth construction and design
professional services, the results of which shall be used to set
an aspirational target under section 21A09 (relating to
aspirational target).
(b) Notice and publication.--The Secretary of General
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Services shall transmit notice to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin regarding whether or not the disparity
study shows a statistically significant disparity in the
utilization of small diverse businesses.
§ 21A11. Compliance with Federal requirements.
If a procurement involves the expenditure of Federal
assistance or contract money, the purchasing agency shall comply
with Federal law and authorized regulations which are
mandatorily applicable and which are not presently reflected in
this chapter.
§ 21A12. Expiration.
This chapter shall expire December 31, 2030 , unless the
disparity study shows a statistically significant disparity in
the utilization of small diverse businesses.
Section 10. Section 303(a.4) of Title 74 is amended to read:
§ 303. Diverse business participation.
* * *
(a.4) Construction.--Nothing in this section shall be
construed to supersede, nullify or otherwise affect 51 Pa.C.S. §
9603 (relating to [participation goal] Statewide participation
goal and aspirational target). In the case of an inconsistency
between this section and 51 Pa.C.S. Ch. 96 (relating to veteran-
owned small businesses), the provisions of 51 Pa.C.S. Ch. 96
shall prevail.
* * *
Section 11. This act shall take effect in 60 days.
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